Comprehending the environmental regulation, biased policies and OFDI reverse technology spillover effects: a contingent and dynamic perspective.

Technology spillovers have the substantial effect on the industrial structure in emerging economies especially from OFDI (Outward Foreign Direct Investment). This research aims to examines the issue on how environmental regulation and biased policies can more effectively promote the OFDI reverse technology spillover effect, specifically the technology spillovers. By classifying the key industries mentioned in the '12th Five-Year Plan' and '13th Five-Year Plan', this research uses panel data from 2010 to 2019 obtained from provincial OFDI in China and utilizes difference in difference (DID) model and threshold regression approach to validate the analysis. The results show that the key industrial policy is favorable to the local OFDI reverse technology spillover. From the outlook of economic significance, the industrial policy increases the regional OFDI reverse technology spillover by 0.133%. Findings of our study further reveals that the environmental regulation and biased policy effectively promote the regional OFDI reverse technology spillover with certain stability. This study findings will be beneficial for policy makers to stimulate the reverse technology spillover impact of local OFDI more effectively from three aspects such as regional marketization level, innovation ability and financial structure.

Fiscal decentralization and economic growth revisited: an empirical analysis of poverty governance.

Based on the panel data of 24 provinces from 2010 to 2018, the static panel model was utilized to analyze the impact of fiscal decentralization and economic growth on poverty reduction, and the Moran index was used to calculate the spatial agglomeration effect of poverty degree. Further, we employed Spatial Dobbin model to examine the spatial effect of fiscal decentralization, economic growth, and poverty reduction. Findings of our results revealed that the rapid economic growth and fiscal revenue decentralization have a substantial inhibitory effect on poverty reduction, and fiscal expenditure decentralization has an important promoting influence on poverty reduction. Our results further showed that the degree of inter provincial poverty has significant effect on regional spatial agglomeration, indicating a pattern of high-value agglomeration in the northwestern and southern border areas and low-value agglomeration in the northeastern and central regions. Finally, the results revealed that economic growth rate and fiscal decentralization have spatial spillover effects on the poverty governance. Based on our study findings, policy suggestions are suggested, such as adjustment of the structure of fiscal expenditure, building a coordination mechanism between fairness and efficiency, and encouraging the activities of agricultural production departments.

Heterogeneous impacts of environmental regulation on foreign direct investment: do environmental regulation affect FDI decisions?

The industry selection effect occurring from the impact of environmental regulation on foreign direct investment (FDI) in China is heterogeneous. Based on the extended game theory model, and by using panel data of 35 Chinese industries from 2005 to 2014, this study constructs a system of simultaneous equations to explore the dynamic effect of environmental regulation on FDI in terms of industry selection decisions. Specifically, three-stage least square analysis method (3SLS) of simultaneous equations is utilized to check robustness of the results under different standards. Results reveal that environmental regulation promotes the technological innovation within the Chinese industry and attract larger foreign capital investment. While the influx of capital further boosts the technological progress, a benign interaction effect was observed between the technological innovation and foreign investment. Findings of our study show that the policy of market borrowing technology is more effective, and the implementation of the new environmental policy will intensify the strategies between managers and enterprises. Results of our study show a positive interaction between R&D funding and foreign capital flows. Enhanced coordination activity within industrial organizations will generate more effective organizational and technological innovation, and attract a large flow of FDI. In addition, industry sample results highlight that a compensation effect of technological innovation in the raw materials and manufacturing industry, though environmental regulation of high-tech industries will generate a balance effect with respect to technological innovation. The government should emphasize on the enhancement of execution and effectiveness of environmental regulation, enhancing FDI and enlightening the synergistic possessions of environmental regulation and FDI.

Can money supply endogeneity influence bank stock returns? A case study of South Asian economies.

This study tests the Post-Keynesian theory regarding bank stock returns and money supply endogeneity in the context of South Asian countries. This study uses panel data set from different sources over twenty-eight (28) years. The research uses different econometric techniques before switching to the generalized method of moments (GMM). The empirical results indicate a significant positive effect of net interest rate margins on bank loans in South Asian countries, whereas a positive relationship exists between foreign to local interest rates and the money supply. The findings depict that positive associations exist between inflation and money supply of banks, and between the money supply and bank stock returns. More specifically, the GMM results show that the money supply has positively affected the stock prices of banks suggesting strong policies for the stakeholders of these economies for the sake of economic growth and sustainable development.